RFR buying $144M note at 610 Lexington at discount: sources

New York /
Jan.January 13, 2012 06:00 PM

Aby Rosen’s RFR Holding is in contract to buy back the debt for far less than the $144.2 million face value at the Midtown development site at 610 Lexington Avenue, a source familiar with the deal said.

Although the vacant property, where Rosen sought to build the Shangri-La Hotel, New York, is in contract to RFR Holding, it was not clear when the sale would close, the source said. The site is adjacent to Rosen’s iconic Seagram Building, at 375 Park Avenue.

In 2007, RFR borrowed $144.2 million from Lehman Brothers Holdings for the development of the 64-story hotel at the corner of Lexington Avenue and 53rd Street. However, the project stalled during the credit crisis. First, Lehman transferred the loans to ING Real Estate Finance in November 2008, city property records show. Then in April 2009 it was reported that Shangri-La had withdrawn from the project. Two months later, ING filed to foreclose on the loan.

Rosen’s company is expected to buy the note for about $75 million, but he had competition from various investors including Roy Stillman’s Stillman Development International, which signed a contract for $80 million, but did not close, according to another source.

The site has rights for just over 200,000 square feet of development, information from PropertyShark.com shows.

RFR did not respond to a request for comment, and Stillman Development and ING declined to comment.

Even as some of Rosen’s projects have been delayed by the downturn, hotel assets have strengthened in value over the past year in Manhattan.

 

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
NYC budget proposes restoring unstaffed voucher discrimination unit
NYC budget proposes restoring unstaffed voucher discrimination unit
NYC budget proposes restoring unstaffed voucher discrimination unit
Neil Patrick Harris and David Burtka in front of 2036 Fifth Avenue (Getty Images, Google Maps)
Neil Patrick Harris sells Harlem brownstone in neighborhood record
Neil Patrick Harris sells Harlem brownstone in neighborhood record
Darien First Selectman Monica McNally and Great Island in Darien, Connecticut (Darien Republicans, Google Maps)
Fairfield County town nears private island purchase for over $100M
Fairfield County town nears private island purchase for over $100M
Sean “P. Diddy” Combs, DJ Khaled, Trippie Redd, Lil Wayne, Rick Ross and Kodak Black (Getty, iStock, Illustration by Shea Monahan for the Real Deal)
South Florida’s rapper resi market is super dope fire
South Florida’s rapper resi market is super dope fire
From left: Oaktree Capital Management co-chairman Howard Mark; Helmut Lang; Hess CEO John Hess; and 8 Tyson Lane in East Hampton, Long Island (Getty Images, Oaktree Capital Management, Google Maps, Hess)
Helmut Lang finally sells East Hampton estate
Helmut Lang finally sells East Hampton estate
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...